ENGRO declares Rs11 DPS as profit spikes by over 69% YoY in 1QCY24

By MG News | April 25, 2024 at 01:11 PM GMT+05:00

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April 25, 2024 (MLN): Engro Corporation Limited (PSX: ENGRO) experienced a rise of 69.40% YoY in its profitability during the quarter ended March 31, 2024, clocking in its consolidated profit after tax at Rs10.38 billion [EPS: Rs10.66], compared to a profit of Rs6.13bn [EPS: Rs6.08] in the same period last year (SPLY).

Along with the profit and loss statement, the board of directors (BoD) has approved an interim cash dividend for the first quarter ended March 31, 2024 at Rs11 per share.

Going by the results, the company's top line skyrocketed by 44.7% YoY to Rs104.3bn as compared to Rs72.07bn in SPLY.

The cost of sales also rose by 41.8% YoY but as the change was lesser than proportionate to sales growth, the gross profit surged by 53.4% YoY to Rs27.59bn in 1QCY24.

Accordingly, the gross margins improved to 26.46% as compared to 24.96% in SPLY.

On the expense side, the company observed a rise in Administrative Expenses by 26.7% YoY and other expenses by 33.8% YoY to clock in at Rs3.35bn and Rs1.29bn respectively during the review period.

Likewise, administrative costs also ticked up and were recorded at Rs3.35bn in 1QCY24, compared to Rs2.65bn in 1QCY23.

A crucial shift was witnessed in ENGRO's allowance on subsidy from the government, where the company recorded a gain of Rs57.78m against a loss of Rs432.45m in the same quarter last year.

During the period under review, other income of the company contracted by 10.1% YoY to stand at Rs3.48bn in 1QCY24 as compared to Rs3.87bn in SPLY.

The company’s finance cost slid by 7.1% YoY and stood at Rs4.05bn as compared to Rs4.36bn in SPLY, despite higher interest rates.

On the tax front, the company paid a higher tax worth Rs8.94bn against the Rs4.88bn paid in the corresponding period of last year, depicting an increase of 83.2% YoY.

To sum up the company's performance, the substantial growth in ENGRO's revenue effectively offset all its increasing expenses and the decline in other income, resulting in significant profit expansion.

Consolidated (un-audited) Financial Results for the quarter ended March 31, 2024 (Rupees in '000)
	Mar 24	Mar 23	% Change
Sales	104,299,728	72,073,611	44.71%
Cost of sales	(76,706,580)	(54,084,911)	41.83%
Gross Profit/ (loss)	27,593,148	17,988,700	53.39%
Administrative Expenses	(3,353,100)	(2,646,666)	26.69%
Selling And Distribution Expenses	(3,746,423)	(2,087,042)	79.51%
Gain / (loss) allowance on subsidy receivable from GoP	57,783	(432,449)	-%
Share Of Profit / (Loss)	631,038	618,201	2.08%
Other Income	3,482,668	3,874,070	-10.10%
Other Operating Expenses	(1,288,695)	(1,946,632)	-33.80%
Finance Cost	(4,046,874)	(4,355,979)	-7.10%
Profit/ (loss) before taxation	19,329,545	11,012,203	75.53%
Taxation	(8,944,667)	(4,881,920)	83.22%
Net profit/ (loss) for the period	10,384,878.	6,130,283	69.40%
Basic earnings/ (loss) per share- continued operations	10.66	6.08	-

Amount in thousand except for EPS

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